- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Purpose Bitcoin ETF
Soma Gold Corp.
Black Swan Graphene
Silver47 Exploration
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Top Stories This Week: "Fear Factor" Returns for Gold, Uranium Breaks US$50
The gold price continued to experience sizeable ups and downs this week, but it's not the only commodity that's been impacted by the conflict between Russia and Ukraine.
Top Stories This Week: "Fear Factor" Returns for Gold, Uranium Breaks US$50youtu.be
The gold price has continued to experience volatility after last week's spike.
The yellow metal was in the US$1,910 per ounce range on Monday (February 28) before rising to nearly US$1,950 on Tuesday (March 1). It pulled back mid-week, but then finished Friday (March 4) at the US$1,970 level.
The Russia/Ukraine situation of course remains key for gold, but with events progressing rapidly it's tough to get a sense of what's coming next. This week has brought intensified conflict between the two countries, as well as increasing number of sanctions on Russia, including the exclusion of some banks from the SWIFT system.
I asked Will Rhind of GraniteShares if these fairly large ups and downs in the gold price are likely to continue, and he emphasized that the crisis in Europe has brought gold's safe-haven status to the forefront. While inflationary pressures have been providing support for the metal, current events have reignited gold's "fear factor."
"This whole crisis in Europe … has really brought back the fear factor that I think has been missing from the gold market. So although gold prices had started to creep up on the back of inflationary pressures that we're seeing all over the economy, we hadn't seen that fear factor in the market since COVID really started" — Will Rhind, GraniteShares
Will also pointed out that gold isn't the only precious metal that's being impacted by Russia's attack on Ukraine. He noted that Russia is the world's largest producer of palladium by far, accounting for about 40 percent of global supply, in addition to the second biggest miner of platinum.
These metals are used in catalytic converters, and Will said concerns about supply chain disruptions are already being reflected in prices. Both palladium and platinum have seen increases in recent weeks, and Will said we could be looking at "materially higher prices" for the two metals moving forward.
With Will's comments in mind, we asked our Twitter followers this week to look beyond gold and tell us which commodity they're watching most closely in light of Russia/Ukraine circumstances. By the time the poll closed, but most respondents had chosen uranium, with oil and gas in second place; platinum and palladium were third.
We'll be asking another question on Twitter next week, so make sure to follow us @INN_Resource and follow me @Charlotte_McL to share your thoughts!
Speaking of uranium, prices have risen, even surpassing US$50 per pound. However, David Talbot of Red Cloud told me that may have more to do with the Sprott Physical Uranium Trust (TSX:U.UN) than with the invasion.
In a Monday conversation, David said the Sprott trust had raised about US$100 million in the last several trading days, enough to buy more than 200 million pounds of uranium.
It is approved to raise another US$2 billion beyond that, and David thinks there's potential for the vehicle to take another chunk of physical uranium out of the market.
"It does seem apparent that many investors believe this Russia/Ukraine situation will lead to higher uranium prices. That said, I don't think there is a lot of risk premium built into the current spot price. The price appreciation looks to be more a response to Sprott buying" — David Talbot, Red Cloud
That's not to say Russia/Ukraine events should be ignored. Eight percent of US electricity is generated by uranium sourced from Russia, Kazakhstan and Uzbekistan, and while David isn't expecting supply disruptions, he does think payments could become a problem due to the SWIFT restrictions on Russian banks.
"I think payments for deliveries now is becoming the big concern, and that doesn't consider whether Russia will want to supply uranium or enrichment services to the west" — David Talbot, Red Cloud
Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.
And don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
- VIDEO - Rick Rule: Gold Malaise Not a Bad Thing, Key Uranium ... ›
- Gold Catalyst to Watch, Why Uranium Could be 2022's Star | INN ›
- Gold Outlook 2022: Consolidation a Launching Pad for Price Rise ... ›
- Gold Outlook 2022: Consolidation a Launching Pad for Price Rise | INN ›
The Beginner’s Guide to Investing in Gold(Part I, The Basics)
Ready to invest in gold? Our beginner's guide makes it simple to get started.
Download your investing guide today.
Learn About Exciting Investing Opportunities in the Gold Sector
Your Newsletter Preferences
With an eye for detail and over a decade of experience covering the mining and metals sector, Charlotte is passionate about bringing investors accurate and insightful information that can help them make informed decisions.
She leads the Investing News Network's video and event coverage, and guides a team of writers reporting on niche investment markets.
Latest News
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.Â
With an eye for detail and over a decade of experience covering the mining and metals sector, Charlotte is passionate about bringing investors accurate and insightful information that can help them make informed decisions.
She leads the Investing News Network's video and event coverage, and guides a team of writers reporting on niche investment markets.
Learn about our editorial policies.